 "As we launch in India, we are looking at 30,000 bookings this year: Kenny Blatt")
Singapore-based company HeyBnb which operate in the short stay accommodation space has forayed into India. It competes with AirBnb. Kenny Blatt, co-founder, HeyBnb in an email interview with Swaraj Baggonkar says that the brand is focused on providing travelers a safe and secure alternate accommodation to a traditional hotel stay. Excerpts
How do you plan to provide a consistent consumer experience to travelers given that there are different private parties involved in your business model?
Quality has two sides to us - our hosts listing and how it is accurately portrayed and our customer's ability to book with confidence. We have a review mechanism in place for both but recognize that the business in India is at its infancy and we will need to work through the education process of both our host and customer.
We have included a review section where a guest or host can review each other on the platform and based on their experience, they rate to each other. These ratings/reviews will help other users to select a host/guest and impact the search preference. As both hosts and guests realize how the ratings work, they will be more focused on constantly improving upon their operations. For instance, properties of a host in Goa having a 5-star rating and better reviews will lead the search result when a traveler looks up for information for Goa accommodations. To be on the top of HeyBnb's search results and get better reviews, hosts will have to provide the best possible services to the guests. That is what is exciting here as each time a host or guest interacts, they learn.
How are posts screened and managed?
For posts, we have an in-house team to ensure the quality of listings with best images, property details etc. These are collected and reviewed thoroughly by team. Only after passing our quality test, a property is listed on our website. Any modifications made in the listings also undergo this review process. This is to ensure that guests see only accurate information about a property/host. A large number of our listings outside of India are in markets where shared accommodation business is more developed and our channel partners have a very exacting review processes.
If a host faces any issues while listing her property or bank related issues, our team, through our 24/7 call center, guides them throughout the process. The team assists in booking process, transaction etc. and helps in establishing a connection between the guest and the host.
How will you differentiate yourself against AirBnb?
As of now, there is no differentiation between Airbnb and us. Our goal is to provide excellent customer service to our customers and really understand their needs and help educate them in the process of booking or listing. In terms of brand building, our focus market is South & South-East Asia. We are also focusing on listings in key cities in Europe and the United States as that is where our India guest wants to wander. As far as product/technology is concerned, we have the same approach with some refinements to account for the local market preferences.
This is an unregulated market, what are the challenges that you face in India?
People in India are not aware of the concept of short stay accommodations, hotels being the preferred accommodation for travelers. Educating users about the homestay concept, its pros and cons are a must for us to grow the market. The Government of India is also promoting the concept of homestays as a part of Start-up India initiative. We also must work with all of the competitors in the market to ensure a safe secure environment for all of our customers.
Where do you drive your margins from?
As with most shared economy businesses, our margins are first derived from the commissions that we receive from both hosts and guests. Over time, we will incorporate other services for our hosts and guests. Residential societies have their own bylaws in India. Don't you think members who list their properties will face resistance from other society members?
Hosts may face some resistance from other society members. For this, we always encourage hosts to take necessary approvals from the concerned authorities/societies/neighbours before listing their properties with us. Also, hosts are required to mention the rules the traveler has to follow to ensure safety for both of the parties.
What is the number of guest bookings that you are targeting at your properties for this year?
Initially we are looking at around yearly 25,000 - 30,000 guests/bookings for this year.
What are going to be your key markets in India?
Goa, Kerala, Leh, Ladakh, Rajasthan, Agra, Pondicherry— these are some of the markets for us. We have identified these places based on the customer focus groups that we have done to date. It typically starts with vacation destination and then the urban cities start to take real hold.
Quality has two sides to us - our hosts listing and how it is accurately portrayed and our customer's ability to book with confidence. We have a review mechanism in place for both but recognize that the business in India is at its infancy and we will need to work through the education process of both our host and customer.
We have included a review section where a guest or host can review each other on the platform and based on their experience, they rate to each other. These ratings/reviews will help other users to select a host/guest and impact the search preference. As both hosts and guests realize how the ratings work, they will be more focused on constantly improving upon their operations. For instance, properties of a host in Goa having a 5-star rating and better reviews will lead the search result when a traveler looks up for information for Goa accommodations. To be on the top of HeyBnb's search results and get better reviews, hosts will have to provide the best possible services to the guests. That is what is exciting here as each time a host or guest interacts, they learn.
How are posts screened and managed?
For posts, we have an in-house team to ensure the quality of listings with best images, property details etc. These are collected and reviewed thoroughly by team. Only after passing our quality test, a property is listed on our website. Any modifications made in the listings also undergo this review process. This is to ensure that guests see only accurate information about a property/host. A large number of our listings outside of India are in markets where shared accommodation business is more developed and our channel partners have a very exacting review processes.
If a host faces any issues while listing her property or bank related issues, our team, through our 24/7 call center, guides them throughout the process. The team assists in booking process, transaction etc. and helps in establishing a connection between the guest and the host.
How will you differentiate yourself against AirBnb?
As of now, there is no differentiation between Airbnb and us. Our goal is to provide excellent customer service to our customers and really understand their needs and help educate them in the process of booking or listing. In terms of brand building, our focus market is South & South-East Asia. We are also focusing on listings in key cities in Europe and the United States as that is where our India guest wants to wander. As far as product/technology is concerned, we have the same approach with some refinements to account for the local market preferences.
This is an unregulated market, what are the challenges that you face in India?
People in India are not aware of the concept of short stay accommodations, hotels being the preferred accommodation for travelers. Educating users about the homestay concept, its pros and cons are a must for us to grow the market. The Government of India is also promoting the concept of homestays as a part of Start-up India initiative. We also must work with all of the competitors in the market to ensure a safe secure environment for all of our customers.
Where do you drive your margins from?
As with most shared economy businesses, our margins are first derived from the commissions that we receive from both hosts and guests. Over time, we will incorporate other services for our hosts and guests. Residential societies have their own bylaws in India. Don't you think members who list their properties will face resistance from other society members?
Hosts may face some resistance from other society members. For this, we always encourage hosts to take necessary approvals from the concerned authorities/societies/neighbours before listing their properties with us. Also, hosts are required to mention the rules the traveler has to follow to ensure safety for both of the parties.
What is the number of guest bookings that you are targeting at your properties for this year?
Initially we are looking at around yearly 25,000 - 30,000 guests/bookings for this year.
What are going to be your key markets in India?
Goa, Kerala, Leh, Ladakh, Rajasthan, Agra, Pondicherry— these are some of the markets for us. We have identified these places based on the customer focus groups that we have done to date. It typically starts with vacation destination and then the urban cities start to take real hold.